Still looking for the market to move back towards 4700 short term.
We closed up for the week, but the market is still struggling to make any major moves up. I am still cautious to the down side but expect to see 4700 before any further major drops are seen.
The US market has seen a mixture of good and bad news over the past week with lower then expected housing starts and UK debt issues still causing problems for the market. On the up side, a number of companies are forecasting good long-term earnings.
Back home the debate is continuing to rage regards the mining tax with the big boys throwing their weight around while Kevin 07 makes a stand to try win back the votes.
Given the current issue in the market place it is hard to see why the market would move to new highs. This market is still a bargain hunters dream; those who dare will make good money in the coming 12 months as begrudging investors throw out the baby with the bath water.
Fair value for this market is 5200 some 14% from the current levels.
For the stock pickers, there is no reason why you should not pick up 30% in the next 12 months if you simply buy undervalued companies.